Assume Bill owns the ISO Ho 2 policy described in this chapter. The limits are as follows: A= $120,000 B=$12,000 C=$60,000 D=$24.000 E=$100,000 F= $5,000 The replacement cost of Bill's home is $130,000, the contents are Valued at $70,000, and depreciation on the home is set at 30 percent.
While playing golf, Bill's sliced drive hits another golfer, knocking him out. Bill yelled a warning before the victim, Bob, was hit. Bob claims not to have heard the warming, and sues Bill for $60,000 in medical expenses, $6,000 in lost wages, as he couldn't perform his clerical work for the local government for 3 months, and $100,000 for pain and suffering. Assume Bob wins the case and it costs an additional $20,000 to provide Bill with legal defense.